DAX Xetra (cash index)
What a turnaround in the past few sessions, as the outlook suddenly threatens to turn negative again.
The market has been slipping back in a relatively calm corrective move in the past few sessions, however the calm has been robustly broken this morning on a sharp downside gap at the open.
Losing over 160 ticks very quickly this morning has not only decisively breached the uptrend channel of the past four weeks but also threatens to instantly shift the outlook.
- The market has broken back below the 12,600 old medium term pivot, which although has been less considered in recent weeks, is still a gauge to suggest the overall control could be shifting if the market consistently trades below.
Momentum indicators have quickly deteriorated and the market is trading below all moving averages again.
There is a big gap open now from yesterday’s low at 12,706, whilst the trend channel is now a basis of resistance at 12,675 today.
This is all reflected on the hourly chart with the 144 hour moving average (currently around 12,660) having been a basis of support now resistance.
- The initial support is at 12,538 with 12,470 being a key reaction low within the recovery and then 12,400.
- Today’s traded high is initial resistance at 12,620.
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